DEVELOPING A FUNDRAISING STRATEGY FOR THE DALIT FOUNDATION

INTERNAL DOCUMENT – FOR COMMENTS ONLY

Accelerating Change for equality…….

FUNDRAISING STRATEGY FOR THE DALIT FOUNDATION

APRIL 2009 – MARCH 2012

C- 58, 2nd floor,

South Extension part – II

New Delhi – 110049

India

Tel: 011-41640929

Fax: 011-41643459

www.dalitfoundation.org

LIST OF CONTENTS

1. INTRODUCTION

3

2. BACKGROUND ON PHILANTHROPY

2A. Overview of Philanthropy in India

5

2B. Estimated flow of funds

7

3. FUNDRAISING BY THE DALIT FOUNDATION TILL DATE

9

4. OVERALL OBJECTIVES

12

5. ASSESSMENT OF SUCCESSES AND LEARNING’S

13

6. STRATEGIC OPTIONS AVAILABLE

14

7. SOURCES

7A. CORPORATE AND PUBLIC SECTOR UNDERTAKINGS

15

7B. STATUTORY SOURCES

17

7C. INSTITUTIONAL DONORS

19

7D. INDIVIDUALS/ MAJOR GRANT GIVERS

21

8. KEY FUNDING DRIVERS

23

9. THE INDIAN ECONOMY AND THE CURRENT GLOBAL

ECONOMIC CRISIS

24

10. COMMUNICATIONS

25

11. IT STARTS WITH A CASE

27

12. CAMPAIGNS & MESSAGES

28

13. INTERNAL CONSIDERATIONS

13A. POLICIES AND PROCEDURES

29

13B. MONITORING & EVALUATION

29

13C. HUMAN RESOURCES / ORGANOGRAM

29

13D. INTERNAL AND EXTERNAL REPORTS

30

13E. STAFF DEVELOPMENT/TRAINING

30

13F. PARTNER SUPPORT

30

1. INTRODUCTION

Dalit is a self designation for group of people of South Asian descent who were traditionally regarded as untouchables or low caste. Dalits are a mixed population of numerous caste groups all over South Asia and speak number of languages. It is impossible to differentiate between Dalits and the various caste groups on the basis of phenotypes or genetics alone. The caste system is regarded by many as a social construct between South Asian people. India has a total population of around 250 million Dalits. The word 'Dalit(a)' comes from the Hindi root dal, and means 'held under check', 'suppressed', or 'crushed', or, in a looser sense, 'oppressed'. The term was used in the 1930s as a Hindi and Marathi translation of "depressed classes", a term the British Discrimination against Dalits still exists in rural areas (where two-thirds of India's people live) in the private sphere, in common, every-day matters such as access to eating places, schools, temples and water sources. It has largely disappeared in urban areas and in the public sphere. used for what are now called the scheduled castes. In 1930 there was a newspaper published for the depressed classes in Pune called "Dalit Bandu" (friends of dalits). The word was also used by B R Ambedkar in his Marathi speeches.In the context of traditional Hindu society, Dalit status has often been historically associated with occupations regarded as ritually impure, such as any occupation involving butchering, removal of dead animals, removal of night soil (human feces) and leather work. One million Dalits work as manual scavengers, cleaning latrines and sewers by hand and clearing away dead animals. Engaging in these activities was considered to be polluting to the individual who performed them, and this pollution was considered to be 'contagious'. As a result, Dalits were commonly banned and segregated from full participation in Hindu social life (they could not enter the premises of a temple or a school and stayed outside the village), while elaborate precautions were sometimes observed to prevent incidental contact between Dalits and other castes.

Most of the Dalits are bonded workers and many work in slave-like conditions to pay off debts that were incurred generations ago. The majority of Dalits live in segregation and experience violence, murder, rape and atrocities to the scale of 110,000 registered cases a year according to 2005 statistics. Common belief is these numbers are nowhere close to the real total of crimes committed against Dalits. Most crimes go unreported, and few registered cases ever get to trial.

Many Dalits who have converted to other religions in the past few centuries continue to retain their Dalit heritage. In the 1991 census, Dalits numbered just over 130 million and constituted more than 16% of India's population. Discrimination against Dalits is limited to the Hindu community. Some Dalits have successfully integrated into urban Indian society, where caste origins are less obvious and less important in public life. In rural India, caste origins are more readily apparent and Dalits remain excluded from local religious life, though some qualitative evidence suggests that its severity is in fact fast diminishing.

Quick Facts

· There are more than 250 million Dalits in India.

· The Dalits are also known as the “untouchables”.

· Even though untouchability is outlawed by the Indian constitution, its practice still exists within society and Dalits suffer as a result.

· Most Dalit children have no access to education.

· The historical hero of the Dalit people is Dr. B.R. Ambedkar who sought their freedom 50 years ago.

2. BACKGROUND ON PHILANTHROPY

2A. Overview of Philanthropy in India

Philanthropy in India is guided by religion and the demands of caste, clan, family and community. Giving is primarily directed towards religious organizations like temples and churches. However, philanthropy has also extended to corporate involvement and the rise of non-profit organizations working towards the country’s development.

Indian philanthropy has always been strongly linked to religion since ancient times. Concepts such as daana (giving) and dakshina (giving to a teacher or priest) in Hinduism and bhiksha (giving to a monk) in Buddhism are rooted in the idea of philanthropy.

In India, philanthropy also evolved into volunteerism. Individual volunteering has had a tremendous potential in India, with most volunteers serving religious organizations.

A 2001 survey by Sampradaan, Indian Centre for Philanthropy covering around 28% of urban India concluded that 96% of upper and middle class households in urban India donate to a charitable cause (ICP, 2001). This charity amount is reported to be around Rs. 16billion (US$34 million) annually. Other major findings of the survey are:

· In terms of average annual donation, Christians in India take the lead, followed by Hindus/Jains; Sikhs; and Muslims. The Christians also give the highest average annual donations to other (non-religious) organizations

· The most popular purpose for which money is donated is to relieve distress of victims of calamity, 21% donating for this purpose.

The most important reason given for donating was a feeling of compassion (68%). The second most important reason was that the giver feels good (48%). Religious beliefs and practices (46%) are the third most important reason. Twenty-nine percent respondents donated because they believed in the cause of the organization. The survey shows that for the donors reduction of taxes as the least important reason (Dadrawala, 2001).

 Another study on individual giving in five southern cities (Dongre, 2003) has also recorded a high incidence of giving, both in terms of size and frequency, among particular income groups. The study shows that the sample of 200 individuals donated an amount of Rs. 0.5 million in one year. The study indicates that in urban high salaried class giving has become more rationalized and people are willing to give to big foundations that can channel the funds more effectively rather than to governmental and religious institutions.

 In the 2001 APPC study, Investing In Ourselves, noted giving behavior by Indians include:

· In India, while there is a natural capacity to philanthropy, this is more informal and ad hoc. Thus informal charity takes precedence over giving for long term change and development. The new wealth created by Information Technology and other new industries, coupled with a large overseas connection through relations and friends overseas, but who continue to maintain links with the home state, has more for a more dynamic gift market in Southern India.

· On the giving rate, India’s is lower than the other three countries, while Indonesia, Philippines and Thailand, the giving rate is as high or even higher than in northern countries.

· India has the lowest numbers of those who gave to relatives and friends. These figures suggest that high income Indians have few ties with poorer people, whether relatives or friends. This is perhaps because the growth of a large middle class happened earlier in India than in the Southeast Asian countries, or perhaps because the financial crisis, which India avoided, impoverished many of the new middle class.

The role of NPOs in addressing the social service issues and empowerment related advocacy efforts has been increasing. The study conducted by PRIA also supports this fact when it notes that every fifth NPO in India works on the issues of community and social service (PRIA: 2002). The favourable disposition of the governments and the political will to involve NPOs is more pronounced in implementation of the welfare schemes addressing to the women and child development.

2B. Estimated flow of funds

There are mainly six sources of raising funds in India; Government, Corporate Houses, Individuals, Trust/Foundations, International agencies and self earned income of the organization (consulting, trading, endowments). Unfortunately, large numbers of NGOs are dependent on international funds or the government grants in India. Involving people in the mission of getting money from common people is not very common. While in India, there are millions of voluntary organisations, but less than half percentage of them are into fund raising. In India, existing potential is 10 billion $ & actual funds raised are mere 500 million $. Out of this, almost half goes to rural areas, one quarter goes to religious institutions & only one quarter goes to all the NGOs put together.

Foreign donors seem to be in a generous mood when it comes to funding non-governmental organisations (NGOs) in India. Foreigners loosened their purse strings to the extent of Rs 4,871.9 crore in ’01-02, up 7.4% from Rs 4,535.5 crore in ’00-01. There has also been a change in the list of the top receivers of foreign funds in the country.

 

The little-known Bochasanwasi Akshar Purushotam Sanstha (BAPS), a Gujarat-based organisation, tops the receivers list with foreign donations of Rs 107.5 crore. BAPS has seen a 280% jump in foreign funding over two years, rising from 26th place in ’00 with receipts of Rs 28.3 crore to the top of the list of receivers in ’01-02. Gospel for Asia with Rs 98.9 crore is the second highest recipient, while the World Vision of India with Rs 88.4 crore is in third place, according to data collated from the home ministry’s latest annual report.

 

BAPS is also the first time a voluntary organisation to have received over Rs 100 crore in foreign funds, the previous high being Rs 88.2 crore by the Sathya Sai Trust in ’00-01. For ’00-01, the top three beneficiaries were the Sri Sathya Sai Trust, World Vision India and the Watchtower and Bible Tract Society. It is also interesting to note that two of the top three receivers (BAPS and Gospel for Asia) of funds in ’01-02 are religious organisations.

 

In ’00-01, Rs 284 crore was received for religious activities by Indian organisations. This has risen by 37.6% to Rs 391 crore in ’01-02. On an average, Indian religious organisations have received around 10% of total FCRA (Foreign Contributions Regulations Act) regulated foreign fund inflows since 1991.

 

Thirteen of the top 25 receivers of foreign funds in India are religious organisations, both Hindu and Christian. Several of these organisations are involved in social causes; the building of schools, housing for the poor, literacy and so on, besides religious activities.

 

Delhi continues to top the list of receiving states with Rs 794.4 crore going to 839 organisations. Tamil Nadu, where World Vision India is headquartered, comes second with Rs 695.5 crore, and Andhra Pradesh follows with Rs 559.6 crore. In terms of cities, Bangalore topped the receivers list with Rs 362.2 crore, followed by Chennai with Rs 311.6 crore and Mumbai with Rs 298.3 crore.

 

The top three donors are all based in the US. The bulk of the funding for Gospel for Asia in India comes from its parent organisation in the US, which heads the foreign donors list with Rs 111.2 crore. World Vision International and Foster Parents Plan International follow with Rs 78.3 crore and Rs 72.4 crore, respectively. Actionaid UK donated Rs 71.2 crore, and the Spain-based Foundation Vincent Ferrer Rs 63.1 crore. The total number of associations receiving foreign funds in India has also gone up in ’01-02 to 15,618 from 14,598 in ’00-01.

3. FUNDRAISING BY THE DALIT FOUNDATION TILL DATE

Fundraising started in Dalit Foundation in a very natural and an internal process. This included references and leads provided or initiated by its Board members and like minded individuals.

A glance on the figures:

2003-2004

Individuals

, 15%

Small

Trusts

85%

0

100,000

200,000

300,000

400,000

500,000

12

2004-2005

Small Trusts

40%

Individuals,

60%

0

5,000

10,000

15,000

20,000

12

2005-2006

Small Trusts

, 1%

Institutional

Donors, 98%

Individuals

1%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

123

2006-2007

Institutional

Donors 98%

Individuals,

1%

Corporates,

1%

0

5,000,000

10,000,000

15,000,000

123

2007-2008

Corporates,

1%

Individuals ,

1%

Institutional

Donors, 98%

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

123

· Amounts for the first round of six grants and nine fellowships were raised through contributions received through various individuals and NGOs. This was done through personal contacts of the board members.

· Almost 98% of DF donors are institutional donors.

· Ford Foundation was the first institutional donor to support the activities of the organisation. Since the organisation did not have FCRA in the beginning, the money was routed through TIDES Foundation. This was followed by Sir Dhorabji Tata Trust, Christian Aid, Holdeen India Programme and ICCO Netherlands.

· In June 2007, Mr. Mathew Cherian carried out a feasibility study of the organisation in terms of fundraising and communications.

· In 2007-08, Ford sanctioned an amount of $2 million toward Dalit Foundations Endowment fund.

· In 2007-08, Dalit Foundation organised its first fundraising event – UTSAVA – Celebration of struggle against oppression. Around twenty five thousand rupees in cash and a few contributions in-kind were raised from the event.

· Paintings which were exhibited during UTSAVA are being used for fundraising. Money received is shown as contribution and the donor is given an 80G certificate along with a receipt and a thank you letter. The money raised from the paintings is deposited in the endowment fund of the organisation.

Observations:

· As the above graphs demonstrate, Dalit Foundation has historically been most successful in raising funds from institutional sources.

· Given that grants and major donations are made over a number of years, there is considerable pressure to maintain levels of income when significant grants end. We will however be working hard to replace the institutional grant income with other sources so that the risk is spread across.

· In the next few years we need to increase the level of income raised. Ideally this income would be unrestricted allowing us to allocate this against any areas of our expenditure. Without any unrestricted reserves to use to invest and with the pressure for fundraising activities to guarantee break even within a reasonable time period, we have identified that the main potential for growth rests with major donors and company fundraising.

4. OVERALL OBJECTIVES

· To raise 1,000 lakhs (215 lakhs, 325 lakhs and 460 lakhs in 2009/10, 10/11 and 11/12 respectively)

· This is against a fundraising expenditure of 205 lakhs in a three year period. This represents a income to cost 1:4

· To diversify sources of income across a greater number of funders to minimise risk.

· To continue to manage relationships with major grant-givers and statutory organisations but to seek alternative sources for additional unrestricted income.

· Initiate fundraising across India backed with needs based communication

· A well defined system of collation and documentation of achievements through an in-house designed process

· Uniform communication style and philosophy across the organisation and partner organisations.

5. ASSESSMENT OF SUCCESSES AND LEARNING’S

The major successes in fundraising till date are:

· Increased confidence of the team of raising funds locally

· Positive relationships with donors

· Support of the Board members leading to a sustained culture for fundraising

· Staff committed and dedicated towards the work

· First round of money raised from Dalit community and like minded individuals

· Flexibility in the program strategy to tailor them to an individual client/family/ community needs leading to donors being positive about supporting the cause

· Adaptability to the needs of the service-users

· Low administrative v/s programme costs

· Image of a social justice organisation within the sector

· Donor constituency suited to major charitable giving

· A South Asian approach and presence

· Replicable model in place for others to learn and adapt from

· Peer group Monitoring and Evaluation processes in place

· Practice of ‘equality’ practiced throughout the organisation

The major learning’s in fundraising till date are:

· Need for a dedicated and a professional fundraising team in place

· Need for a updated and interactive web site

· Inability of donors to donate on line

· Not able to reach out to the past donors / no such donor care system in place

· Need for organizational infrastructure - standardized policies, staff assignments, procedures, systems, and methods to support fundraising initiatives

6. STRATEGIC OPTIONS AVAILABLE

There are five fundamental strategies available to fundraising programs. They are growth, involvement, visibility, efficiency, and stability. Each has it’s own costs and benefits – and is appropriate to a stage in the life of the organization. Often a not-for-profit will find itself in a position where it is unable to meet the demand for its program or service. In order to meet the demand it will have to expand its donor base and revenues. This is the time for a growth strategy. In this situation the organization invests in attracting new donors who will expand revenues in future years.

Other organizations may place an emphasis on delivering their program with volunteers instead of cash. This is an involvement strategy. An organisation for example through with its volunteer letter writing campaigns is a classic example of an involvement strategy at work.

New organizations and movements often choose a visibility strategy where their prime objective is to be noticed. They try to achieve visibility in hopes of attracting future supporters and donors.

Once the organization has grown to the point where it can provide sufficient program to meet demand, it usually switches over to an efficiency strategy. Stewardship and sound management are the priorities here. The emphasis is usually on maximizing the ratio of revenues to costs.

After doubling its donor base in recent years, organisations switch emphasis to upgrading donors to monthly and planned giving – and increasing the revenue to cost ratio as a result. Sometimes a mature organization will find itself in a period of crisis. In this case stability is the right strategic choice. This is a defensive strategy where the emphasis is on keeping existing donors rather than attracting new ones.

From the assessment of the Dalit Foundation’s previous donor approaches and successes, it has to place an emphasis on the strategies of visibility and efficiency in the said strategic period.

7. SOURCES

7A) CORPORATE AND PUBLIC SECTOR UNDERTAKINGS

a) INTRODUCTION

Historically, Indian companies and Public Sector Undertakings (PSU’s) had always strong philanthropic activities mostly targeting their employees and their families. Studies reveal that majority of the companies did not take CSR seriously and those who did, did it only with a philanthropic frame of mind. Most companies/PSU’s made their employee welfare activities as part of their CSR initiative, not really contributing to an outside community or its development.

However in recent years there has been a new paradigm shift in corporate giving-from philanthropy to stakeholder participation. The first perceptible change has been the introduction of a host of innovative programs and schemes in several areas like education, healthcare, rural development, environment protection, protection of artistic and cultural heritage and disaster management that are customized to meet the specific needs of the target group and corporations devote not only financial resources but expertise, manpower, products and services for the successful implementation of these schemes:

The projects that companies/ PSU’s get involved in are actually genuine and serve a purpose, they do a round of elimination….make a shortlist, as to which are the good ones, after a lot of verification. Sometimes they supervise the implementation part by visiting the area. Several organizations like Gas Authority of India Ltd. (GAIL) have introduced benchmarking exercises for their CSR activities .and industry bodies like Confederation of Indian Industries and FICCI have introduced cross-sectoral programs, for the first time, in CSR related areas.

One of the greatest challenges of Business-NGO partnerships is the change in mindset. But it’s fundamental to embrace new ways of thinking to create successful partnerships. Difficulties faced by NGOs are meeting up to the expectations of the corporates and following a professional approach, being clear and transparent in handling of funds.

b) Intervention by Dalit Foundation

Till date, there has not been any planned strategy by Dalit Foundation to approach Corporate houses for support.

c) Objectives

· Raise 150 lakhs from companies in a three year period

· None of this income is guaranteed

· Develop funding relationships with at least nine companies in a three year period

d) Mechanisms

· 150 lakhs will be raised through nine new companies.

· Register with CAF India, Give India to attract funds from companies

· Get registered with Hewlett Packard for – computers and software donation

· Introduce work of Dalit Foundation to Nasscom Foundation which is a consortium of IT companies

· Undergo an in-depth research into companies which will match the focus area/location of the project

· Approach companies for sale of Godna paintings and greeting cards

· For the unrestricted income, we would enter into pay roll giving partnership with at least one company a year.

· We would work on the processes for understanding the ‘Charity of the Year’ concept and try introducing it with one corporate for the year

· We will also approach at least one company a year for Cause Related Marketing

e) Resources required

· Database of companies to be in place

· Organisation portfolio to be ready for sharing with companies

· Case for support document

· Shopping/Needs list that can be asked from a corporate

· 35 Ac tax permission from the Income tax Department of Government of India

7B) STATUTORY SOURCES

a) Introduction

Over the years, Bilateral, Multilateral and UN agencies have come to play an important role in supporting development activities in the developing countries of Asia. Most of this support has been channeled through the governments as official development assistance (ODA). Increasingly, however, bilateral and multilateral agencies are recognizing the capabilities of NGOs to reach grassroots groups. NGOs are regarded as legitimate alternatives to the bureaucracies of government. As a result, significant moves have been made by many donors to develop relationships with NGOs and to channel ODA to NGO projects and activities. Financial assistance to NGOs in developing countries generally comes from two sources: grants by donor NGOs going directly to recipient NGOs, and portions of ODA which are channeled to recipient NGOs either for joint government/NGO undertakings or for programmes or projects implemented directly by NGOs.

The recent changes in Government policies with regards to bilateral assistance, has created some confusion and also resentment amongst the bilateral donors. In 2003, Government of India decided to discontinue taking development assistance from bilateral development partners other than Japan, U.K., Germany, USA, EC and the Russian Federation. Subsequently, in January 2005, Government came out with a revised policy. As per the new policy, with regards to the bilateral grant assistance to Non-governmental organizations (NGOs) and autonomous institutions, all Countries can continue to provide bilateral development assistance directly to autonomous institutions, universities, NGOs, etc., as before. There are currently several mechanisms through which NGOs receive ODA funds. One such mechanism has evolved largely from government initiatives to involve NGOs in the implementation of foreign-assisted government projects. This has led to the emergence of NGOs which some observers call "public service contractors". This trend has been criticized because of the cooptive and short-term nature of the government/NGO partnership.

Most of the International Multi and Bi-lateral agencies, UN organisations, Northern Governments, International non-Governmental organisations work in India through India based offices and local Consultants. They help their head offices in the north to develop policies and help in monitoring their development aid programmes in the country. These offices/consultants play an important role in shaping their policies, strategies and programmes in India. NGOs could play a part in influencing policies favourably.

b) Intervention by Dalit Foundation

Till date, there has not been any planned strategy by Dalit Foundation to approach statutory sources for support.

c) Objectives

· Raise 450 lakhs from Statutory sources in a three year period

· None of this income is guaranteed

· Develop funding relationships with at least five major statutory sources in a three year period

· To diversify the statutory funding base

· To maximise core costs being funded by statutory donors.

· Study the in-country government grants available under the relevant ministries

· Explore all budget lines (project, strategic, thematic, research, health/education, social policy, gender and women and child development etc).

d) Mechanisms

· Develop funding relationships with statutory sources such as CIDA, Friedrich Ebert Stiftung, and small grants of local embassies

· Explore DFID India strategy and explore the possibility of support

· Identify a Canadian agency for partnership for putting in a joint application to the Canadian High Commission, Ottawa, Canada.

· Keep abreast of, and respond to, changing grant-making mechanisms and opportunities by statutory donors.

· Intensive research into the government of India grants and avail funding under the relevant ministries

· Maintain efficient reporting and grant-monitoring systems

· Continue to work with the Team in the development of detailed 3-5 year operational plans reflecting organisational strategic priorities that can be used in multi-year applications.

e) Resources required

· Database of statutory sources to be in place

· Country strategies and funding guidelines of statutory donors needs to be identified

· Project ideas/summary needs to be drafted for a project match with statutory

Sources.

7C) INSTITUTIONAL DONORS

a) Introduction

The number of NGOs is increasing. As the sector grows, competition for funding increases. However new and different funding sources are becoming available. Growing numbers of wealthy people are setting up charitable trusts.

The ability of an organisation to attract funding is becoming more dependent on its ability to

demonstrate its value and impact. The importance of measurement of outcomes is increasing. This raises the evidence hurdle as the quality of data needed to secure funding increases. Some funders are shifting their support towards what is proven to be working rather than insisting on new or innovative projects.

Information is also far more accessible via the internet, changing the relationship between donors and organisations by increasing expectations of accountability and the amount and quality of information that donors demand before giving, and that they expect to receive after giving.

b) Intervention by Dalit Foundation

This is been a source of income where Dalit Foundation has been immensely successful. Agencies such as Ford Foundation, Christian Aid, ICCO and many such agencies have provide vital support to the initial years of the foundation’s work.

c) Objectives

The emphasis will be on securing multi-year grants to increase stability.

· To raise 325 lakhs from 10 – 12 organisations in a three year period

· To look at options of registering Dalit Foundation as a UK charity in 2009/10

· To explore the possibility of securing European Commission grants

d) Mechanisms

In order to meet the fundraising target we will:

· Identify areas in deficit and prioritize these for developing applications for project funding;

· Package up the most innovative and interesting projects and submit applications to potential new supporters;

· Nurture existing donor relationships – via the work plan and reporting schedule, provide high quality account management, timely evaluation reporting, project visits etc to ensure continued funding;

· Renew grants from those trusts where the grant is coming to an end with a view to these being three to five year commitments;

· Reactivate previous donors – review any lapsed or dormant supporters, as previous supporters are more likely to give again;

· Continue to diversify funding sources through research to identify new trusts from overseas;

· Till Dalit Foundation is registered, register with organisations who provide with a platform for funding. Examples: www.giveworld.org ; www.give2asia.org, www.ngoworld.com, www.globalgiving.com

· Design a programme of carefully tailored mass mailings to smaller trusts and foundations that do not warrant individual applications;

· Work with Trustees and key supporters to identify contacts within trusts and to develop these relationships with a view to securing long–term support;

e) Resources required

· Financing from major donors requires increasing evidence of need, both thematic and geographical, and research skills will be required to produce this evidence;

· Resources may be required to produce new case studies in order to demonstrate the impact of Dalit Foundation’s work;

· Costs of establishing UK Foundation;

· Subscription to US/European funder databases

7D ) INDIVIDUALS/ MAJOR GRANT GIVERS

a) Intervention by Dalit Foundation

There has been no planned strategy by the foundation in this area of fundraising

b) Objectives

· To raise 75 lakhs from individual / major donors in a three year period

· To research details of at least 500 names and contact details of individual donors

· To have a database software for a systematic storage of current as well as prospective donors

· Have a direct marketing plan with clear and specified audiences within the donor database

· Send one round of mailer to supporters on warm database and have a detailed history of their donations every year

· Send two mailers to database of banks and mobile operators. (Companies such as Vodafone, Bharti, HDFC, HSBC will insert our appeals in the billing pack to mobile service users and credit card holders. This will not only save postage charges but will guarantee that this reaches people who are on warm database). Our own bank where we hold an account could be approached for this.

c) Mechanisms

I. Intensive research on the individuals and major donors (High Net worth Individuals)

II.Cultivation

· Personal meetings

· Engage connections

· A small reception with the existing donors and prospective donors - Recognition reception. This would provide a good networking opportunity for supporters and an opportunity to meet up with Dalit Foundation staff and Board members too

· A targeted e-newsletter once a quarter

III.Recognition

· We need to consider imaginative and cost-effective ways of recognising and rewarding some of our donors. We should also consider a sliding scale of recognition to size of gifts. This might be an area where we involve some of our warmest supporters. We should consider for significant gifts whether we would consider a Board position

· We should consider whether we formally assign “club” status and membership benefits to a group of givers over a particular amount. It would be good to explore how this has worked for other NGOs or seek the advice from the experts in the sector

· We currently acknowledge and thank donors in the following:

-Annual review

-Annual accounts

-Website

-Branding on sponsored items

IV. Solicitation

· It might take 8-18 months to cultivate a donor sufficiently, ready for an ask

· Prepare individual strategies for each prospect

· Use Board, other supporters, and Director to support the ask

· Prepare for each donor prospect meeting and be prepared to counter objections

V.Stewardship

Develop a policy for the acceptance and acknowledgment of:

· Thank you’s - personal hand-written thank you letters from a member of the Board, Director or any of the service-user

· Reporting

· Relationship management

e) Resources required

We will have to allocate some amount each year in direct expenditure against major individual donor fundraising activity. This is extremely time consuming and requires most of the time of at least one member of staff with support from additional members of the team, the Chief Executive and the Board. We need to spend additional time and resource on analysing data, and utilising the database to ensure our activity is properly planned and co-ordinated.

8. KEY FUNDING DRIVERS:

· Many grantmaking trusts and foundations and wealthy donors are becoming steadily more strategic in their giving and engaged with the organisations they support;

· Funders are increasingly seeking better information to help them select the organisations they perceive to be capable of making the biggest difference;

· Competition for funds is intensifying due to the growing number of NGOs, and due to polarisation of large and small NGOs

· Income generating activities will continue to grow over the next five years as will the expectation that organisations should generate their own income.

9. THE INDIAN ECONOMY AND THE CURRENT GLOBAL ECONOMIC CRISIS

· The global economic crisis is having a noticeable adverse impact on the Indian economy already and it is likely to remain this way for some time. This poses significant challenges for Dalit Foundation in consolidating its current position.

· Though economic volatility often creates winners and losers it is highly likely that the nature of the current economic crisis is likely to impact every industry adversely. Despite this, impacts will vary considerably between sectors and understanding this may help Dalit Foundation’s strategic direction in its fund raising efforts.

Recommendations

· The global economic crisis will inevitably pose challenges for Dalit Foundation’s fundraising needs. These challenges require strategic thinking as to the approach DF takes in seeking its funding and where and to whom it directs its energies.

· Charities are often hard hit in economic downturns but it is not always the case that people stop giving in these circumstances. While overall there is likely to be large job losses and wealth loss due to falling equity markets and property prices, many individuals will maintain the same income levels through the crisis and may be prompted into feeling a stronger sense of obligation to contribute to social charities.

· Previous / lapsed donors, institutional, corporate and individuals, should be targeted as these have established a willingness to contribute and this approach is consistent with consolidation which should be the focus in the current environment.

· Companies in sectors less likely to be severely hit by the crisis – such as high value added manufacturers, mining, IT and other services –should be targeted, again with a focus on getting lapsed donators to contribute and current to contribute more.

· Governments will often spend more during downturns to minimize the fall in overall demand in the economy. Though no research has been conducted here into the intentions and fiscal positions of current state government donors, it would be prudent to look into any possibility of DF receiving any benefit from extra government social spending. For example, there is a announcement by the Oil Ministry that all Public Sector Undertakings which are owned by the states will contribute 2% of its pre-tax income to social projects.

10. COMMUNICATIONS

There is a clear need to strengthen communications in Dalit Foundation. Steps should be taken to ensure a strong and a vibrant brand identity and visibility of the organisation. Once the fundraising strategy is finalized, a detailed communications strategy needs to be worked around it. This could be done in-house / seek an external agencies support and guidance. The ultimate aim is that Dalit Foundation’s name should be recalled when there is a mention of Dalits.

Objectives:

· To use consistent communications messages and styles in our communications

· To target potential supporters with exciting and informative communications materials about our activities/events.

· To ensure our communications messages are easy to understand and communicate and that the material we provide is easy to re-distribute and is equally suitable for this purpose.

Mechanisms:

1. Online social networking and broadcasting sites: Set up Dalit Foundation profile on a range of relevant popularly visited websites such as Rediff, Google, Indiatimes, to raise awareness of the work, harness support and to promote our work and events to website visitors. We will also post our profiles on sites such as Indian NGOs and other popularly visited development sites.

2. Our website: Our new website will be live by April 2009 and will provide the opportunity to inform current and potential donors our work and success. We hope to encourage existing supporters and their donors to make repeat visits to our site to donate online, view fundraising progress and post their views on the bulletin board, view photos from events, etc. We also aim that there will be a Hindi version of the website for the benefit of service-users. While availability of each of these aspects of the site is likely to be staggered, we hope to have all features available by June 2009.

3. E-newsletter: This will be sent out quarterly to registered members to inform them of any DF news, provide fundraisings advice, fundraising tips and any relevant or interesting event related information. The E-newsletter will be created using a template from the new website.

4. Fundraising materials: We will prepare and make available to prospective supporters a range of fundraising materials;

· Fundraising pack: This will have a brochure, case for support document and an annual review of Dalit Foundation.

· Annual reviews: These will be produced annually and will be distributed to the entire mailing list of Dalit Foundation. In the near future, we will aim to have this translated in Hindi also.

· DF Bookmark: We will research the possibility of having bookmarks made using printing ‘off-cuts’. These could be sent to supporters to distribute to others and raise awareness of our work. We could also use them as small thank you gifts when sending a thank you note.

· Library of good images: It is absolutely vital that we project our work in the most visible manner possible and hence we will aim to have a comprehensive library of good quality images.

5. Visibility: We will use the below methods to enhance our visibility

· Mass Media: We will make optimum use of mass media through radio and television talks, press releases and ad spots. We will also have audio visual presentations and short clippings made which will project our work in the best manner possible.

· Days of Importance: We will have a day dedicated and celebrated as ‘Dalit Empowerment Day’ possibly on Ambedkar Jayanti. All partners will be encouraged to do this and this will bring a nation-wide presence and awareness about Dalits and their rights.

· Exhibitions and Festivals: We will have art exhibitions planned at state and national level and will exhibit the art and craft of Dalit community. The dual objective will bring in awareness and like-minded people together.

· We will organize ‘Ethnic Food festival’ which will bring together Dalits to demonstrate the variety of food prevalent in their communities.

11. IT STARTS WITH A CASE

A Case Statement defines:

· Who you are

· Where you've been and where you're headed

· What you WANT

· How you're going to get it

· When you'll get there

· How much it’s going to cost

A good Case Statement has a compelling, self-evident need, has vision, and is defensible. It needs to be brief, clear, positive, upbeat and an easy read. It needs to answer 6 questions:

1. What is your primary focus?

2. Who is your service-user?

3. What does the service-user consider value?

4. What have been your results?

5. What is your plan?

6. How much is it going to cost?

Since Dalit Foundation does not have a case statement the first job is to take the time to

write one. Part of that process is to confirm the top priorities for funding and then establish the fundraising goal to achieve those priorities.

The case statement will be the ‘spine’ of the communications plan. Elements of it will be used to write a news release, a brochure, a fact sheet, a PowerPoint presentation….each tailored to the audience for which it is intended.

As importantly it will be the guide to assist all board members and staff to communicate about the organization in a consistent and accurate manner. It is important to review and revise it regularly to keep it current, accurate and ‘fresh’.

12. CAMPAIGNS & MESSAGES

INNOVATION AND OWNERSHIP

Funders often want to fund innovative projects that make a difference. We will establish clarity about what Dalit Foundation ‘owns’ and our areas of innovative work. We will emphasise the uniqueness of Dalit Foundation by focusing on our approach to the building of services for Dalit people, including the level of consultation we undertake with stakeholders, by working with local partners, by employing local staff and by building the capacity of local organisations to create service longevity.

INVESTMENT IN DALIT FOUNDATION

We aim to encourage new funders to support Dalit Foundation by investing in the principles and values of the organisation so that we retain flexibility in our spending.

PROJECT FUNDING

Donors respond to opportunities to give where the price, the rewards, the package and the relationship are clearly set out. Where possible we will seek funds for specific projects aiming to build in as much core expenditure as possible in the project costs. Case studies are a powerful tool for this.

SUSTAINABILITY

Where appropriate and to meet funder requirements, we will use the theme of sustainability to emphasise the value of support and to demonstrate the importance we place on financial responsibility and local autonomy.

THEMATIC FUNDING

We will aim to build proposals around areas of work incorporating office costs, looking at themes of advocacy, education, campaigning and social inclusion.

IMAGE

The image that we want to communicate to our supporters about our events is that we are a professional, experienced, efficient and credible charity offering a diverse portfolio of fundraising events.

13. INTERNAL CONSIDERATIONS

13A. POLICIES AND PROCEDURES

The following policies and procedures will have to be established within the organisation:

· Work closely with the programmes team to understand the changing needs of the field

· and the finance team to ensure that all income is recorded and reported as per the agreed guidelines and deadlines.

· Ensure that we are complying with statutory legislation and best practice within the voluntary sector.

· Respond to all inquiries and/or donations that come to Dalit Foundation within 48 hours of receipt.

13B. MONITORING & EVALUATION

We would use the following indicators to measure our fundraising activities

· Repeat donations from existing donors

· Signing in of five new donors every financial year

· Steady increase in unrestricted funds

· The average donation per individual donor is Rs. 2,500

· The returns of cold direct mailings comes to 3%

· The fundraising programme is adequately staffed and funded and maintains a 1:4 cost to income ratio

· Donor feedback is acknowledged within 48 hours of receipt

· Two project partners raising 50% of funds themselves

· Total number of meetings and proposals sent v/s successful proposals

13C. HUMAN RESOURCES / ORGANOGRAM

The Fundraising and Communications team would have

· A Communications Manager who would look after production of communications materials and brand raising of the organisation

· A Networking Manager focussed on fundraising activities with a clear focus and responsibility of researching new donors, streamlining and increasing donor database.

· The Executive Director would head the unit and oversee the fundraising and communications strategy of the organisation. He would also line manage both staff members and continue to contribute to the overall strategy through his active participation.

13D. INTERNAL AND EXTERNAL REPORTS

· Continue to manage relationships with donors and keep them and Board of Trustees updated.

· Have an annual reporting schedule for donors

· Prepare quarterly narrative report on fundraising activities, income and expenditure report as per the agreed format.

13E. STAFF DEVELOPMENT/TRAINING

· Provide opportunities for development and personal growth.

· Have a training needs assessment of the fundraising team keeping in view their areas of work.

· Identify appropriate training venues where staff could be exposed to trainings

· Help identify mentors to key fundraising staff where they get needs based and focused support.

· Have a regular system of monthly staff meets and supervisory/appraisal meets.

13F. PARTNER SUPPORT

The ultimate aim of Dalit Foundation is that all its partners should have strong and effective mechanisms in place. This will be ensured by support provided in the form of providing needs based support. This will largely include - self needs identification by partners, accounts training, human rights training and women leadership training

Specifics include:

· We will provide support to partners in identifying and achieving their fundraising and communication objectives. This would take 20% of the team’s time.

· Whenever and wherever required, we will involve experts within the sector as resource persons

· We will prepare Communication guidelines for partners and provide them with inputs to implement them within their organisations

· We will support them in drafting a fundraising strategy and needs based communication materials to present their work

· We will have trainings and one-to-one support aimed at partners for fundraising strategies, media management and communication material generation.

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Fundraising Strategy – Dalit Foundation

April 2009 – March 2012